Current economic conditions swirl around businesses like a storm encircling a ship at sea. Although winds howl and rain pounds against the structure, the ship does not break. The vessel harbors treasure inside, waiting to be unveiled once the roaring waves have calmed.
Similar to a ship at sea, Winnebago is waiting out the storm and preparing innovations.
While the manufacturer’s fiscal third-quarter results reflected a soft RV market, the company is striving to uplift company progress in various ways.
Grand Warranty Implementations
Winnebago President and CEO Michael Happe addressed social media “misinformation” regarding frame flex on Grand Design fifth wheels. The term refers to excessive chassis movement in relation to the structure atop the chassis.
Happe said the company collaborated with consumers, frame suppliers and industry experts to resolve the issue.
“Less than 1% of all Grand Design fifth wheels built in the entire history of its company have experienced any sort of excessive frame flex issue,” Happe said. “This is an issue which is not as large in actuality—from a unit impact standpoint nor in financial impact—as several stakeholders perceive it to be.”
The manufacturer is providing consumers with a five-year frame warranty. Each Grand Design warranty will be transferrable to subsequent owners. The frame warranty also will be honored retroactively from the date of the original purchase starting with the 2020 model year.
Winnebago Senior Vice President and Chief Financial Officer Bryan Hughes said, “Grand Design has always taken care of its customers.”
Additionally, Winnebago leaders anticipate Grand Design’s Lineage motorized launch to boost profitability. Lineage dealers will include Grand Design towable dealers and new brand dealers.
Happe said the motorized “competition is not going to hand Grand Design market share very freely. So, we anticipate an intense battle, but we have a very strong and focused team on that product line.”
Wider Scope
Throughout Winnebago’s RV segments, the manufacturer focused on inventory. The company is intentionally timing its 2025 model reveal for inventory-related reasons. The timing will enable dealers to continue focusing on working through aged inventory.
Winnebago said 2022 model-year RVs were nearly non-existent at the end of the third quarter. At the end of May, 12%-14% of dealer inventory was model 2024 RVs.
Winnebago said its market share slipped slightly in the past 12 months as competitors with lower-priced RVs made gains. Happe said Winnebago will maintain its premium portfolio despite the market share dip. He said he expects the conditions to reverse in the coming years, providing a market where Winnebago will introduce innovations.
